Supermarket entry and its effect on small stores in Montevideo, 1998 to 2007

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IDL-48193.pdf (394.56 KB)

Date

2009

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Abstract

This study contributes to the data on the impact of supermarket entry on small retailer activity and employment. It analyzes the effect of large-scale supermarkets on small retailers’ sales in Montevideo (Uruguay). Findings show that the entry of one supermarket in a small store’s neighborhood increases its chance of going out of business in that year by 1.2% on average. The percentage of people working in the retail sector however, is not affected by supermarket entry. Multinational entry and consolidation in the retail industry in the 1990’s caused small retailers in Uruguay to lobby against unrestricted entry in the sector.

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Keywords

SOUTH AMERICA, COMPETITION POLICY, SUPERMARKETS, URUGUAY, RETAIL TRADE, EMPLOYMENT, LABOUR PRODUCTIVITY

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URI

http://hdl.handle.net/10625/48193

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IDRC Research Results / Résultats de recherches du CRDI
2000-2009 / Années 2000-2009
Research Results (GGP) / Résultats de recherches (MCP)